we now elect presidents according to what gives the offers, performance, truth, honesty. that's not a factor. but the next four years be different from the first? no. gasol agenda president. bob from texas says thank you for the information. if only the american people would pay attention to what you report. i cannot believe this and in congress from the country without a budget. we love hearing from you. send me an e-mail. finally, as if things are bad enough, just a few months after the storm hit the area gets walloped by a snowstorm. now they will have to pay more in property taxes. no kidding. according to the new york post, the city is going ahead with planned tax hikes coming property values have shot up, even in neighborhoods devastated by sandy. many homeowners in these areas have not finished even making repairs, and many have not been able to move back, yet. the hike in property taxes is

not new. part of a five-year plan put in place that would assess values and a regular basis. this was said to happen even beffre sandy. talk about our list. huckabee raise people's property taxes when some people don't have any property to go back to. coming up tomorrow, the president gets set to deliver his state of the union address and we get reaction from former cbo director. you want to hear that. that's it for tonight on "the willis report." thank you for joining us. have a great night in the see right back here tomorrow. ♪ lou: good evening, everybody. president obama preparing to pivot to job creation in tomorrow state of the union address in which he is expected to call for a renewed focus on jobs. of course, more government spending. we will show you how many times

the president has had to pivot. also tonight among the latest on of 150-foot wide asteroid that is expected to come closer to striking earth than any other on record. the scientists say the * most likely threat is to the hundreds of weather and telecommunications satellites in geostationary orbit some 22,000 miles above the earth. and what a small college with a big idea, a big idea that could create chaos for more than 4,000 colleges and universities in the country if they follow suit. that plan may prove expensive and embarrassing to all those schools. we'll tell you all about it. we begin with the president's fourth state of the union address and his expected calls for more taxes, more spending, and yet another predicted job creation. a white house aide telling the "wall street journal" the president obama will call for spending aimed at creating jobs,

nothing new from a president who has made this declaration repeatedly since he took office in 2009. >> right now our number one focus has to be jobs. and encouraging business investment. at think we are past the crisis point in the economy, but we now have to pick and focus on jobs and growth. >> my principal bull for focus, number one focus is going to be making sure that we are competitive, a growing and creating jobs, not just now, but well into the future. >> at a time when our economy is still recovering from the recession, our top priority has to be jobs and growth. lou: despite his repeated claims that job creation is his top priority, 20 trillion americans remain out of work, underemployed, or have given up on finding work. the unemployment rate that

almost 8%. a tent of a percent higher than when president obama took office. meanwhile, president obama says his administration is already more than half wait toward its goal of deficit reduction with the president calling for more tax hikes to finish the job. it. >> over last few years democrats and republicans have come together and cut our deficit by more than two and a half trillion dollars to a balanced mix of spending cuts and higher tax rates for the wealthiest americans. that's more than halfway toward the $4 trillion in deficit reduction that economists and elected officials from both parties say we need to stabilize our debt. i believe we can finish the job to see where we started it, with a balanced mix of more spending cuts and more tax reform. lou: the obama -- obama propaganda machine insists jobs have never fallen below priority number one despite the president's preoccupation with gun control, comprehensive immigration reform.

ed henry has our report. >> well president obama only use the word jobs twice in his inaugural address, his team is now building tuesday's big speech as it continues a major push on the economy. >> you will hear the president's state of the union l1 from him for his plan to create jobs and grow the middle class. the president has viewed the two speeches, the inaugural address the state of the union as 2x in the same plate. >> that has featured lots of scenes with the president focusing instead on gun-control, immigration reform, and other issues. headlines this weekend about the president pivoting back to jobs, of frays republicans say the effort nearly a dozen times since mr. obama first tried to put it back from health care. >> the president spent most of his first term avoiding the issues americans cared about most. what i'm suggesting is you got to the same thing this time around.

>> white house officials note the overall thrust of the inaugural address was about helping the middle class and despite other issues popping up, jobs a priority number one. >> there is no privilege here. the president's principal preoccupation since he ran for this office beginning of 2,007 has been what we need to do to make our economy work for the middle-class. >> and get the public appears to believe those efforts have fallen short with a poll finding last week 53 percent of the public believes the nation is still in a recession. another challenge for the president, signaling he will be more combative toward republicans tuesday night and will say little about cutting the size of government even the latest fox news poll found that when asked what issues they are extremely concerned about, number one was government spending, just ahead of health care and the economy, despite democratic leader nancy pelosi claiming washington does not have a spending problem. >> it is almost a false argument to say we have a spending

problem. we have a budget deficit problem we have to address. >> policy went on to claim that nothing brings more money into the u.s. treasury than investing in education. investing, another word for spending. lou: they cute. fox news chief white house correspondent. well, turning to the president's state of the union address, will he be able to convince americans that a recession start economy can turn around now that he places jobs at the top of his party list? joining us is stephen hayes, senior writer for the weekly standard, fox is contributor, washington's examiner, chief political correspondent. good to have you here. let's start with you. you found a list of interesting headlines to suggest that this is not a new experience for the president to lead the nation end up of it. >> he has done it over and over again. the biggest was back when he was

involved in passing obamacare for year from 2009-10. he has promised this a lot. i don't think once beach is going to change anything because there was a new report that came out from rutgers university. the unemployment rate is almost 8 percent, but it showed that 23 percent of americans have lost a job sometime in the last four years. president obama's time in office. another 11 percent have somebody in there household lost a job. one-third of the american people who have lost a job as a result of this economic downturn since obama has been in office. one speech is not going to change their pessimism on the economy. lou: the very thought of a new address from this president on the economy and job creation with nancy pelosi saying that spending is not the problem as it calls for more spending, is there some point at which we become simply abused children?

because this is becoming -- i mean, it's awfully tiresome. people were saying things that are fundamentally, empirically, demonstrably untrue and we look up and they are elected officials of our government. >> it's pretty extraordinary. nancy pelosi was basically just echoing sentiments from the president and self. reported in the "wall street journal" that barack obama had told john that he did not believe there was a spending problem. i followed up a couple weeks later with the speaker's office. the white house never even pushed back on the claim that the president had told the speaker that there was a spending problem in the country. it was something that the white house basically accepted as true , the president said this, there was not a spending problem. so how to republicans tried said breached good-faith agreements or good-faith negotiations about reducing the size and scope of

government with a president who does not believe that that is to happen? lou: and reports today that the white house is calling on the house to come up and talk sequester, precisely what the speaker said he would not do. is that trap being laid? is it springing as we speak? >> the president would like to lay the trap. in a speech is going to talk about some of the terrible things that would happen if sequestration goes through. as far as i can tell from talking to republicans and house and senate, they are pretty dug in on this because sequestration is a law right now. to nothing in these cuts happen. if you opened it back up as the president is going to make the case for doing and create some sort of mixture of some budget cuts and then new taxes in the form of expanding the base toward getting rid of some new polls, you're not going to get the cuts that you already have

in law. lou: nothing fascinates me so much says talking about sequestration, budget deficits, mounting national debt, getting down to all those zeros. i think the american people have had a bellyful of this act from both parties, this president, the speaker, whoever it may be in washington. is it about time that we found somebody with in this congress, within the senate and perhaps the white house roving the halls lated night, someone who could talk about the quality of life in this country, a vision for the future and how we're going to go about getting there without a senate that will pass a budget, president to will not propose sincerely a budget, and the blueprint for our future. is it about time some people awaken doubt there? >> is long past time, i would argue. you are hearing some of these

things from republicans. at the republicans deserve credit for doing the kinds of things that they have to restrain spending whether its passing the budget, already passing bills. lou: the expression ad nauseam, doesn't it tryout to have that addition when we talk about that? my lord, give it a rest. let's talk about something bigger, better, and more effective because this has been a whale that we have heard for the past four years. it is unhelpful now. >> i don't agree with you on that. it is actually something when republicans go to the trouble of passing a budget and taking on -- lou: i agree with you about that. do it. they have done it. as a matter of fact, they have done 17 times. at what point do you say, we have put down a marker. >> i think that is the frustrating part for

republicans. they have done this now. the question is what can you do with control of just one house of congress to back it is clearly not -- lou: one thing you can do is now where a seven the other thing you might be able to do if you chose to do that is start articulating the new end compelling message. you get the last word. >> if you listen to republicans they will say, they were locked into doing a lot of these things there really was a law that would have raised taxes. had to be dealt with and really is the debt ceiling. lou: no problem with that. >> if you listen to the now they're trying to switch to this message. the number two guy in the house gave a speech at the american institute. american enterprise institute clearly talking, stressing quality of life issues for middle-class families. listen to what he says. the republican response to the state of the union. he will be talking about that. they are trying to picture of some of these fiscal fights to a more quality of life america

economic well-being argument. lou: i think the pivot will be looking for it. cannot wait for the reality. and thank you both. >> thank you. lou: president obama awarded the medal of honor to clinton from a share, a former active duty army staff sergeant who fought off a 2009 television attack in afghanistan. the 31 year-old rallied 53 of our troops who obama's says were outnumbered, outgunned, almost overrun. it was a date as long fire fight against 300 heavily armed taliban and insurgence. a combat outpost, and isolated base located in eastern afghanistan. >> i accept this tremendous honor on behalf of all soldiers who have served with me that they. that a soldier's it did not make it. and for the rest of the team the fought valiantly and magnificently that they, forever

be humbled by the bravery, the commitment to service and the loyalty for one another. lou: the fourth living person to receive the military's highest ever for -- highest honor. the northeast slowly returning to normal after being buried under a record-setting snowstorm over the weekend that left at least zero people dead in new england. schools remain closed across much of new england and new york today. 140,000 homes and businesses still without power. meanwhile residence in mississippi are cleaning up after tornadoes cut a 75-mile path of destruction across the south central portion of the state. at least 63 people were injured. 200 homes damaged or destroyed red storm rising. is america more communist china and china more capitalist than

america? we will figure it out in the "chalk talk." the economy is cooling. moody's chief economist tells us where we're headed.

♪ lou: president obama expected to call for more spending in tomorrow state of the union address. moody's chief economist joins us to tell us how the markets will react. just moments. first stocks opened with modest losses. the dow jones industrial down 22, s&p lost a point and nasdaq down to. two and a half million shares traded on the big board. i'll ask what that means. the lowest reading level since the 28 to december. fox business charlie gasparino reporting that that nasdaq group

holding talks about taking them as -- nasdaq market private. the company is working on of rest what size workable computer. and i watch. the price of gold down almost $18 a day. crude oil up the dollar 301 closing above $97 per barrel. so far this year will up almost 6%. in the bond market the government's tenure treasury closing with a yield of just under 2%. passengers on a five day cruise in the gulf of mexico are spending a few more than five days. the ship's engines caught fire over the weekend. that was not helpful. sending more than 42 wondered passengers and crew in the gulf. the ship being towed to port in mexico where it is expected by wednesday. passengers will be flown back to galveston when the ship left just last thursday.

the stock down just a little. my next guest says the market's disapprove of employment programs funded by higher federal spending. joining us now with his outlook, chief economist for moody's capital market. we are looking at a market that is still hot. ten days ago the dow jones industrials. were off from that. what's been going on? >> of six and a half% for the year to date. that's pretty good. lou: up even more ten days ago. quite a few points. >> i think it's just biding time. it's also not being driven by expectations of faster earnings growth. i think it's basically the consequence of the expectation that bond yields stay low and in order to avoid the dangers of low bond yields as well as low

returns yet more money moving into equities. lou: if that is the case you go by the rotation idea. >> i would say and by the rotation. more money is coming out of the special dividends that we had at the end of 2012 as well as a lot of money coming out of those money market mutual funds paying close to 0% interest. lou: the president talking about jobs, pivoting to jobs once again. he wants more spending. just about done with that. regarding how we eventually result the u.s. unsustainable federal budget situation white -- why aren't wall street firms, business saying straight out flat at what they very well note that the rest of the country needs to hear because the

parties that are making this look like a partisan battle just say flat out this is a crazy idea, mr. president. it is down to keep spending money and throwing in a way in creating greater debt for generations of americans. it's time to act like a grown-up. why don't they say things like that? >> i really don't have the answer other than the fact that they think their is a cost of being honest about the and sustainability of the current federal budget. lou: a cost to that. this president as an opportunity to say something new. >> one positive. one positive shock. it does not cross my -- cost much these regulations. if they did so in the energy front that could generate a lot more jobs, help put some downward pressure on energy costs which spurs consumer

spending. lou: i certainly hope there were listening. thank you for being here. walking away with the top spot. the economy brought and $36 million for universal pictures. considering it received harsh reviews. much of the focus on the weight of the leading lady. talk about unkind. last week number one. the warm bodies call the second place. the new crime drama. side effects came in third. the $10 million for open road films. up next republican senators working for real answers on benghazi in exchange for dropping a threat to hold the president's nominations to run the cia and the defense department. we will tell you have those nominees do. new evidence of china's threat to america amended can be found

in international trade statistics, just like to have been saying for a many years? quite a few. that "chalk talk" is next. [ shapiro at legalzoom, you can take care of virtually all your imptant legal matters in just minutes. protect youramily... and launch your dreams. at legalzoom.com we put the law on your side.

♪ lou: i love that word. the president's state of the union address tomorrow expected the mark up have it back to the economy. job creation. here is why the president should never have strayed away from the economy. new figures out today show that china has now officially surpassed the united states and is the world's biggest, biggest trading nation. china's exports and imports of goods last year, exports and imports totaled almost 4 trillion. compared to the u.s.

yes. it's that close. but that's not all. also posting a full year trading surplus of $231 billion. $231 billion. the united states report it a total trade deficit of just about $728 billion. that's a trillion dollars wing. -kendis is without any question. a trillion dollars wing. china also posted an over 8% increase in its gdp in the latest quarter compared to our stunning decline.

it's unimaginable the thing that that growth rate feels light -- china's latest unemployment rate , unemployment, unemployment rate of 4%. and china's government debt, yes, they have a debt. ours is a 16 and a half trillion dollars in debt. but you know what, i can't believe that the chinese feel a little bit better about tears because are going to add another trillion dollars hours. meanwhile, the united states those china almost 2 trillion.

there is no counterweight. it's a little problem for us to know what is after all the communist nation almost $2 trillion we are big shot capitalists. what is wrong? we are going to be talking about that very issue throughout the week, looking at how the united states model comparison europe's model. is the communist model any more sustainable? if no one has of model that is working maybe it's time to look at the possibility of a new model or perhaps we should return to the values that created all of this wealth for nearly all of the world. certainly all of america. the continue in a moment. a another state of the union address. another pivot to jobs.

it's california. we will tell you what that means. are you confused about what president obama calls foreign policy? we sort it all out next. the boys used double miles from their capital one venture card to fly home for the big family reunion. you must be garth's father? hello. mother. mother! traveling is easy with the vture card because you can fly any airline anytime. two words. double miles! this guy can act. wanna play dodge rock? oh, yoguys! and with double miles yocan actually use, you never miss t fun. beard gring contest ango! ♪ i win! what's in wallet?

♪ lou: the senate armed services committee holds a vote tomorrow on the nomination of former senator chuck a bill to become secretary of defense. the senate finance committee will hold his confirmation hearing for treasury secretary nominee jack clued on wednesday, and their is a new opening, the head of the small business administration announced she is leaving the administration once a successor is confirmed. might be selected to the job. joining the cabinet that hardly meets and does not assure access to the president in any way.

the president obviously does not hold his cabinet members in high regard. since 2009 the president's cabinet meetings have been steadily declining pros six in each of his first two years to four in 2011 and that trend is accelerating. only three cabinet meetings were held last year. you can see why anyone would be excited to join such an important organization as this president's cabinet. the white house firing back republican senator lindsay gramm after he threatened to all the nominations over the benghazi attack. >> what is unfortunate here is the continuing attempt to politicize an issue, in this case kutcher nominees that themselves had nothing to do with benghazi and to do so in no way that only does harm to of our national security interest. they need to be confronted. lou: joining us, fox news

security analyst. convicted the blind shaken also the author of spring fever, the illusion of islamic democracy. that's his most recent book. but the only one by any stretch of the imagination. good to have you here. you know, i feel sorry. he seems very upset that senators mccain and gramm would actually show leaders and insist upon information about unrest in carrying out there functions. is there anything we can do to correct senator mccain? >> i think if he was that of said he ought to suggest the president did out there as strongly support his candid it's. this is very similar to what happened in george bush 41. he nominated mild boss, john

tower. secretary of defense. terrible, permission hearings and various other problems after that. bush did not step up and supporting. lou: in this league of history as become problems. lou: twist in the wind long enough and that that point i think he is in big trouble. lou: twisting. it turns out we just received word that there are two speeches that the former senator had given in 2008 dealing with israel that he did not report. since his views on israel are part of this problem here, but it's unfortunate to think to be defense secretary or want to be, to have this mission. >> he had a number of omissions about as well. he spent a number of speeches.

the problem saying dumb things is hardly a this qualifier. otherwise have the people who are in the administration and probably a lot of of ministration would not be a. the problem is the people who he is giving the speeches for into he has been colluding and aligning with over the years. lou: one example. i'm sorry. i'm getting confused. >> there is at least one group that is the main lobby for the iranian regime in the united states. he has been friendly with. report came out last week which is not confirmed yet. also not denying it very vigorously that one of the groups behind the speeches may have been announced as a friend of the moss. lou: that has a ring to it. >> it is confirmed. he will have a really hard time being secretary of defense. lou: why does this man want to be secretary of defense?

>> obama once in. a similar world view. the problem will be when he gets to testify before congress they're going to eat him alive. when he tries to say their is a defense budget it will eat him alive. the other thing is there are too extreme the qualified people the president obama could turn to shed the nomination get in trouble. the first woman, number three. the first woman secretary of defense and the current number two, both very well respected by both sides of the aisle. lou: it's going to be interesting to see where we go. what do you think? does he make it? >> i think unfortunately brennan makes it and he is the more troublesome of the tube. if you can imagine that. it sounds like you will sail through. they did not give him a challenging time of the hearing. lou: to you agree? >> probably. the bigger -- i agree, the bigger one we should pay attention to is not what speeches he made to which group.

but author of the drug wars, we are now going to be conducting american foreign policy and military policy on the basis of drones. lou: let's take a look at the drawn strikes that accelerated markedly, dramatically under president obama from the bush years. freaky put that up to show how it is grown. 352 drone strikes in pakistan and yemen under president obama. 352, and in 63 in given since 2009. one strike under president bush. 289 strikes in pakistan verses 45 and the bush. last week, we only take such actions as a last resort to save lives. any actions will be legally grounded, the early anchored in intelligence. what does that sound like a rehearsed line? what the implications if he is confirmed? and i want to add one thing to this issue.

a new website. a new website to me. coming out with this report that part of the problems that we are creating, the cia under david patraeus moving toward special operations instead of carrying out what has been traditionally its responsibility, intelligence gathering. where does all of this ploy? >> they always had two sides of the house. operations and intelligence analysis side. the strikes, the drone strikes at this point to me are not that offensive because frankly the one thing we know is we cannot allow it test set up a safe haven a place. that was the problem we had. lou: and not questioning the use what i am talking about is this administration has made such a

dramatic increase in the number of those strikes that there does not seem to be much room for this, if you will, it almost -- well, it is a highly questionable to -- questionable theory the special operations for a big deal. drones are a big deal because everyone bought on to including the republican house oversight people. no basis for an opposition to say we don't agree with drones. >> of the opposition. >> i think it's great command and not squeamish. lou: said no think we will disagree. >> here is the problem. we are now using drone estimate getting not just the top guys to let down and down and having a lot of collateral damage. are we creating a whole new generation of people who hate us? number two, we have a president who is doing a thumbs up, thumbs down.

at a like it. >> the culture is the problem in terms of hating us. prefectural. what i don't like about the drones is the idea that the president can unilaterally. the work takes place under the reauthorization for military force which is 12 years old and acred in september 11th. you have to ave congressional buy yen. congress is authorized overdoing we're now getting into a questionable character. >> also we are lowering the bar. not a good idea to go to war in easy for us to play a video game and go to war that way. i do think we should think twice , two, three, and four times before we commit american forces to battle. >> said think the issue is that we have raised a military that does not think in terms of victory. a bunch of politicians to worry about going through a sensitivity training. i would love to have somebody

clarify the distinction between a military it cozening does the job done as our military and intelligence services did with in the course of seven months of afghanistan. we screwed up after that. we have persisted in afghanistan for 11 years. what affect? that is collateral damage from we should be pursuing the national interest which means without reservation or qualification. i hope we're in agreement. if no reroute of timely way. coming appear tomorrow, republican national committee chairman joins us. former bush adviser joins us. republican strategist, fox is contributor among our guests. you would not want to be one of those who just accidently does not join us tomorrow night. killing star facebook page. e-mail us. you can tweet me. up next, the president looking at even more executive fiat to

implement his second term agenda. the "a-team" is next.

♪ lou: joining us know, the "a-team". could to have you with us. let's start with the president having once again. we discussed it at the beginning of this broadcast. sixth of its he documented. c'mon. did they not have an original idea in the entire white house? >> they're still in the same place they started from. as always been the economy, jobs commander has not been much time if you want to get anything else done to make yourself the economy man. >> it has not.

>> now they say it is. the economy this week. last week it was immigration. you know, it's a lot of different things. >> this has been the same that we have seen over the last four years. do everything but. the first journey focusing on health care, no it's consumed with gun control and immigration reform. lou: you point out that can control, the president got it done. he had pelosi and reid get it done, but they got it done. since then, and leave dodd-frank at of it, says then there has been nothing. effectively nothing. >> if you come back to the economy and talk about jobs, when you get attacked for something else you can say, look, and trying to fix the economy. lou: you can say it any more. lou: the unemployment rate is above where the president was. the worst recovery in this

economy is history. we're going to be back with the "a-team" and are going to find out what in the world is going on down in our nation's capital. stay with us. we're coming right back. ♪ @a

♪ lou: were back with the "a-team." let's get to the jobs. let's start with the jobs. this president is -- if this were president bush is this simple, there would be a -- the "washington post" to be headlining in everyday. a left-wing media, 90 percent of the cable programs would be all over mr. bush. we hear nothing, nothing.

>> we hear a few squeaks from the entire government right as they're being called. the extreme left a lot of people who care about civil liberties. other than that, you're right, he gets a pass on having terror tuesday's are he and a bunch of guys sit around and draw circles around people's names, the names of americans. and i just find this shocking as someone who supports the job program, i still find that shocking. what i find more shocking is the lack of outrage among my colleagues in the media. >> i could not agree. lou: pratt of the propaganda machine. >> i am an american first a propagandist second. i have to agree on all counts. this is very, very, very hurtful . it was done to protect this of ministration. it in front of the problem

before it began. lou: the idea goes to the new york times. that should raise. >> nbc. lou: instead of the new york times you have to say why was that? was the purpose. it is a time-honored tactic public-relations as well as propaganda. [talking over each other] >> the left for years, not just one day as we are seeing with this groan strike, every single day for years the left in the media in this country pounded president bush over every single counter-terrorism policy, rendition, black said of interrogation, indefinite detention, data mining, or in this wiretapping, and with the exception of enhanced interrogation techniques president obama has accepted and then dropped it every single policy.

taking it one step further. [talking over each other] >> this administration, and i have to say this clearly. more cia findings. that is kind of an interesting. the press is let him get away with it. >> no more people who have been killed by drones than water boarding lou: that is a terrific point. the likelihood is we're going to see it continue. the question is what will be the result as we watch the hearings unfold beginning tomorrow and on to wednesday? >> i do. >> i think a 50 / 50 proposition . republicans actually put their money where their mouths are and hold on this. it brinnin i think it's through

unfortunately. lou: some clashes. doing his job. a leader. >> i think he buys the farm. he's going to have a problem. lou: thank you. we appreciated. that's it for us tonight. we want you to join us tomorrow. a preview of the state of the union. we will be joined by republican national committee chairman. a unique perspective. thank you for joining us and we will see you tomorrow. good night from the york. suddenly, she does something unexpected

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